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In any supply chain, we are using a planning hierarchy to transfer planned demand and balance supply with requirements on its various levels. A good understanding about what's happening at each level is essential to strike an effective balance of service and inventory levels.
Policy setting is at the heart of this task and the planner has to carefully evaluate when to perform a capacity check, requirements netting and the generation of supply elements.
This video strives to provide a basic model for demand and supply planning using profiles that are available in standard SAP ERP
